Buying your first home is a significant life event, more so than any purchases you made in the past. It can be overwhelming to some when they realize it is different than purchasing a car or major appliance. The entire process can be complicated and more than a little confusing to first-time homeowners. Mistakes can be made that have significant repercussions if you don’t prepare before purchasing a home for the first time. Here are some errors that are commonly made when buying a first home that should be refrained.
Speak to Fluxx Funding Before You Shop for a Home in the Tampa Bay Area
Doing your homework prior to looking for a home will put you ahead of the game. You don’t want to be forced to scramble to get things in order after you found the home you wish to purchase. You need to know several pieces vital to the home loan process. Things that should be understood are the variety of loan programs that are available, the terms of different loan programs, the down payment requirements, the cost of private mortgage insurance (if any) and the what is involved in securing a loan.
The best way to understand these requirements is to speak to us at Fluxx Funding and find out what is entailed in procuring a home loan. We can tell you if your credit is good enough for a loan, what to do if your credit isn’t quite good enough. The next step is to get pre-approved for a home loan so that you know what priced home you can purchase.
Know How Much You Need to Buy a Home
This point seems simple, but many first-time home buyers don’t factor closing costs into the price of the home. Closing costs can bring a significant increase to the overall price of the home. Taxes and unforeseen fees can drive up closing costs. A good rule of thumb is to add 2% to 4% to the price which the home is listed. Fluxx Funding can tell you about payment requirements before you apply for a loan.
Don’t Try to Be Your Own Real Estate Agent
You don’t have the skill or experience to negotiate over a property. A good real estate agent who understands your needs can win negotiations for you. Make sure to find a real estate agent who is patient with you as a first-time buyer and who won’t mind guiding you through the process.
Think About Location
You may have found a great house at a reasonable price, but you overlooked the reason it is such a bargain. The price of the home will remain static or drop if it is in a high crime or run-down neighborhood. Remember your home is an investment and taking a lesser home in a neighborhood filled with new construction and burgeoning commerce is preferable to decaying areas.
Inspect it First
This point may seem another common-sense item, but inspecting your home can save headaches in the future. Make sure to have a qualified inspector who is familiar with structural, electrical, and infestation issues. If possible, have the inspection done before the offer to put you at an advantage.
Don’t Overspend
Buying a home that is a struggle to pay for is not a wise decision. You don’t want the stress of paying taxes, and upkeep costs in addition to a high mortgage. Buy a home that allows you to continue to save and invest without reducing the quality of your lifestyle.
With a little research and sensibility, you should be able to take part in the age-old American dream of homeownership.
Fluxx Funding wants to help you achieve your goals. If you are in the greater Tampa Bay Area call me at 813-915-6649 or email at [email protected].
